Self-Styled Godman Ashok Kharat Arrested by ED in ₹70-Crore Money Laundering Probe

Mumbai: Self-styled godman Ashok Kharat, who is already lodged in jail in connection with allegations of rape and fraud, was formally arrested by the Enforcement Directorate on Tuesday in a ₹70-crore money laundering investigation after the agency secured approval from a special court. The arrest came following proceedings before the Special Prevention of Money Laundering Act Court, where Kharat was produced through a production warrant from Nashik jail, where he has remained in judicial custody.

During the hearing, the Enforcement Directorate sought permission from the court to place Kharat under arrest in connection with its ongoing financial crime investigation. While allowing the agency’s request, the court observed that investigators were attempting to trace substantial amounts of unaccounted cash and determine the identities of those who allegedly benefited from the suspected criminal operation. The court further noted that the investigation materials outlined Kharat’s alleged involvement in the commission of money laundering offences in considerable detail.

“After going through the application and particularly after hearing the special public prosecutor and the investigating officer) I am of the opinion that the arrest of the proposed accused is necessary,” the court stated while granting the Enforcement Directorate’s plea.

Following the court’s order, the central agency completed the required legal formalities later in the day and formally arrested Kharat, according to an official familiar with the matter. Investigators are expected to produce him before the Special PMLA Court again on Wednesday, when the Enforcement Directorate will seek his custodial remand in order to continue questioning him and expand the probe into the alleged financial conspiracy.

The Enforcement Directorate initiated proceedings against Kharat under the Prevention of Money Laundering Act on April 6 after taking cognisance of a First Information Report registered by Nashik Police. The FIR accused him of extortion, religious manipulation, and allegedly drugging and assaulting several women victims. In addition to the money laundering allegations, Kharat is also facing multiple criminal cases involving accusations of rape and sexual exploitation. Nashik Police arrested him on March 18 after a married woman alleged that he had repeatedly raped her over a period of three years.

According to the Enforcement Directorate, Kharat orchestrated a large-scale extortion operation and subsequently laundered more than ₹70 crore through an elaborate network of benami bank accounts. Such accounts are typically maintained in the name of one individual while the actual ownership or source of the funds belongs to another person.

In its application seeking the production warrant, the agency argued that custodial interrogation of Kharat was necessary in order to expose the broader conspiracy, identify the ultimate beneficiaries of the alleged operation, and trace the complete movement of funds. Investigators also informed the court that the suspected money trail could potentially involve cross-border financial links.

The Enforcement Directorate has alleged that Kharat opened as many as 60 bank accounts in a single day at the Samata Nagari Cooperative Credit Society located in Ahilyanagar district. Investigators claimed that these accounts were created using personal documents belonging to victims without their knowledge or consent, and that transactions exceeding ₹70 crore were routed through the accounts.

According to the agency’s investigation, Kharat also acquired numerous movable and immovable assets in his own name as well as in the names of family members using funds allegedly obtained through extortion schemes. The Enforcement Directorate further alleged that he collected money from victims by marketing ordinary products such as tamarind seeds and honey as supposedly “blessed” items with spiritual significance.

Authorities stated that a Special Investigation Team is currently probing 12 separate cases involving allegations of sexual exploitation and financial fraud registered against Kharat across Nashik and Ahilyanagar districts. The investigation continues as agencies attempt to uncover the full extent of the alleged financial and criminal network surrounding the self-styled religious figure.